Sensex, Nifty to get weaker – Thursday closing report

Nifty may head towards 8,000


After two days of opening in the negative, the Indian stock market opened higher on Thursday. However the indices witnessed a pull downward within a few minutes of trading.  We had mentioned on Wednesday that the market is in a correction mode. This has turned out to be correct. Although the benchmark managed to stay mostly in the green (almost till the 10.50 am), the indices fell into the red thereafter, and stayed there for most of the remaining session.

The S&P BSE Sensex opened at 27,143 while NSE's CNX Nifty opened at 8,115. The indices hit their respective highs at the beginning of the session at 27,151 and 8,128. Sensex hit a seven-day low (including today) at 26,905 while Nifty hit a four-day low (including today) at 8,057. Sensex closed at 26,996 (down 62 points or 0.23%), while Nifty closed at 8,086 (down 8 points or 0.10%). NSE recorded a higher volume of 112.70 crore shares. India VIX fell 3.19% to close at 12.5175.

Among the other indices on the NSE, top five gainers were PSU Bank (2.13%), Auto (0.63%), FMCG (0.49%), Infra (0.40%) and Finance (0.36%) while the top five losers were Pharma (1.90%), Media (1.42%), Metal (0.73%), CPSE (0.62%) and Commodities (0.58%).

Of the 50 stocks on the Nifty, 25 ended in the green. The top five gainers were IDFC (3.52%), State Bank of India (2.20%), Bank of Baroda (1.93%), Bhel (1.44%) and PNB (1.36%). The top five losers were Sun Pharma (4.59%), ONGC (3.50%), Coal India (3.25%), NMDC (2.32%) and Lupin (1.84%).

Of the 1,612 companies on the NSE, 1,063 companies closed in the green, 503 companies closed in the red while 46 companies closed flat.

Finance Minister Arun Jaitley was discharged from hospital on Wednesday, after planned surgery to manage a long-standing diabetic condition, and will miss a meeting of finance ministers from the Group of 20 nations in Australia next week.

Two PSUs, State Bank of India (1.90%) and BHEL (1.53%) were among the top two gainers in the Sensex 30 pack. Tata Power (1.11%) was among the top four gainers in the ‘A’ group on the BSE. The company had bought a 30% stake in two major Indonesian thermal coal producers, KPC and Arutmin, and the related trading company owned by Bumi in early 2007. The main objective was to import coal from Indonesia when global prices were around $40/ tonne in 2006. But with the prices were crossing the level of $100/tonne in 2011. The Indonesian government was also banning exports. These have gone against Tata Power's plans. Tata Power had sold 5% stake in these mines along with a 30% stake in related power infrastructure companies in July and plans to soon sell the remaining stake soon.

Sun Pharma (4.29%) was the top loser in the Sensex 30 stock and among the top three losers in ‘A’ group on the BSE. Its Halol manufacturing plant in Gujarat has been subjected to surprise inspection by the American drug regulator United States Food and Drug Administration (USFDA). Recently, three important medicines from the US market were recalled and all of which were produced from Halol.

Motherson Sumi (9.30%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. The chairman of the company sees 15%-20% topline growth along with a 40% return on capital employed in this fiscal. The stock was also recently added in the future and options segment.

Cabinet Committee on Economic Affairs on Wednesday approved stake sales in three PSUs namely ONGC (5% stake), Coal India (10% stake) and NHPC (11.36% stake). The government plans to raise about Rs46,000 crore from the divestment in these three PSUs, based the closing price of the shares on Wednesday. These three stocks were among the top six losers in the ‘A’ group on the BSE.

US indices closed in the positive on Wednesday. US President Barack Obama in a speech late on Wednesday said that he had authorised US air strikes for the first time in Syria and more attacks in Iraq in a broad escalation of a campaign against the Islamic State militant group. He said he would hunt down Islamic State militants "wherever they are," reports added.

Except for Nikkei 225 (0.76%), NZSE 50 (0.49%) and Straits Times (0.26%) all the other Asian indices closed in the red. Seoul Composite (0.74%) was the top loser.

China's consumer price index rose 2% last month from a year earlier, according to data released by the National Bureau of Statistics today. Factory-gate prices extended their decline to 30 months, adding room for government stimulus to support the economy amid a property slump. European indices were trading in the red. US Futures too were trading lower.



sanjeev naik

3 years ago

market is not headed towards 8000. its headed to wards 8300 by next week end. dont you see it managed to close above 8050-:)

SEBI censures BSE for lapses in NMDC's Rs6,000 crore share sale

While censuring BSE for lapses during NMDC's Rs6,000 crore OFS, the market regulator has asked the Exchange to conduct independent review for remedial steps


Market regulator Securities and Exchange Board of India (SEBI) while censuring BSE for lapses during NMDC's Rs6,000 crore offer for share sale (OFS), has asked the Exchange to conduct independent review for remedial steps. In an order, Prashant Saran, whole time member of SEBI also advised the market regulator to conduct a detailed probe into confirmation of bids by Citibank NA.


"BSE is hereby directed to engage one or more independent consultants to review the entire sequence of events in the matter, the process followed, checks in place, systems employed while accepting the OFS bids by BSE. The Consultant should bring out the shortcomings, if any, and suggest remedial measures within a period of three months. BSE shall then fix the responsibility internally, both in terms of processes and personnel, and take appropriate action," SEBI said in its order.


In December 2012, SEBI sought an explanation from the BSE for accepting bids for four crore shares after the cut-off time for trading. The rules governing such shares sales say that stock exchanges have to reconcile all orders and payments in the half an hour after trading time - 3.30pm to 4pm -- and that no orders can be accepted after close of trading hours.


However, SEBI found that the confirmation of bids for NMDC's 4.55 crore shares received from Citibank with available funds was clearly not concluded within the stipulated time of half an hour after post close session.


When Justice Is Not Black and White
Courts often deal with moral dilemmas, when the just course is unclear
Over the past issues, Moneylife readers must have noticed that filing cases in courts, either civil or criminal, entails a certain amount of responsibility. To jog the grey cells, we especially refer to the case where a public prosecutor, though aware of his case’s weakness, avoided withdrawing it as he was worried that he may be hauled over the coals for graft. In a way, he was right. Even though the complainant refused to turn up for almost all of the 32 hearings, withdrawal of the case would have entailed a few questions. Why should that be so?
A very recent Supreme Court judgement throws light on the subject. It says a lot for the sanity of the bench and against the detractors. 
So, you be the judge.
A police inspector is alleged to have taken a bribe. He is trapped by the Andhra Pradesh Anti-Corruption Bureau (ACB). The usual enquiries are made and there is a prima facie evidence against the man. He is charge-sheeted and is now an accused in a criminal case.
Andhra Pradesh is one of several Indian states that are fertile ground for anti-national activities. These are home-grown terrorists who specialise in attacking the Establishment, especially police parties and convoys. The duty that the forces face are hazardous, to say the least. Police action against the perpetrators requires skill, daring and intelligence. Any police officer successful in such pursuits, and who comes out alive, deserves recognition for meritorious service.
In this case, the inspector was the one involved in both, the graft and the heroic act. The Andhra Pradesh government decided that with such gallantry behind him, the inspector should not be prosecuted for an amount as small as Rs5,000—the alleged bribe that the man had sought.
Was the government right in pardoning the inspector? 
You be the judge.
The matter went right up to the apex court. It declined the government’s plea. The court maintained its independence and instructed the Executive—in this case, the Andhra Pradesh government, to distance itself from the proceedings. The bench of Justice Deepak Mishra and Justice PC Ghose said that it was the bounden duty of every judicial proceeding to consider whether such an act, on the part of the Executive was likely to derail the course of law. It said that such a pardon on the part of the courts could lead to manifest injustice. Strong words.
In a case in England, something not dissimilar had happened. And the court’s words were equally eloquent. A man had committed a theft. He was caught. He was found guilty. He was jailed. Unfortunately for the crook, his travails did not end there. After the cops had their day and say, the income-tax authorities came into the picture. To them, the money stolen was ‘income’ and, therefore, had to be taxed!
In law, there is a saying that a man cannot be punished for the same crime twice. Why? We shall discuss that at a later date. But our poor thief sought refuge behind this shelter. 
You be the judge.
Should the man pay the taxes asked for? After all, he had paid for his crime by imprisonment. Paying taxes, he said, would amount to double jeopardy. And he had already paid for his crime.
The judge disagreed. His lyrical pronouncement said that justice cannot be delivered with a blinkered eye. The law cannot, he said, rule with one eye open to the crime and another closed to the tax liability. The man must pay for both, the crime and the ‘income’.
Sharp readers may ask if the money was recovered from the crook. The book is silent on that, unfortunately. But maybe the money was spent to pay the lawyer for the unsuccessful defence. 
Poetic justice?
Bapoo Malcolm is a practising lawyer in Mumbai. 



Bapoo Malcolm

3 years ago

Mr. Dhoka,

Presume you mean black sheep.

We all have horror stories to tell but to tar all with the same brush, and without solid proof, is incorrect. Maybe, I have more axes to grind than you do, but then, to use a public medium, uncensored, to air our grouses may lead others into difficult situations.

Am sure a lot of your blogs still remain. My concern was Moneylife, the magazine, nothing else. You can always post your comments privately.

So will I, (if the need arises)

Radhakrishnan Subbiah

3 years ago

It is time that humanity realises that no of amount laws can help an uncultured society. More the laws, the merrier it is for some... no need to name them. Back-bone of this great country's culture was systematically broken by the foxy British. But now, even after independence, we are only apeing their laws ,designed for the benefit of their rule. All that we need, is to re-establish our proven culture, where there need be only a few sane guidelines (exemplified by Gurus / the teachers )to live by. It is enough for a cultured society.

Vaibhav Dhoka

3 years ago

There are black ships everywhere and more in judiciary as complaint against a judge is not checked authentically.Now you hear from J.Katju who has bought many Chief Justices in suspicious area.Then there is compalint going on in SC about sexual harassment of Addl.District judge of MP by high court judge.Now the question is what type of JUSTICE such blackships will be delivering.This I am writhing as you insisted my blog to be removed from this column.There was 100% truth.Who will judge these blackships in judiciary.

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